-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SldF+BrmMnr0Mt0j4h0RFyxiNf4TKbquhEtFPPM/vVJwny+uC6griFv4ciCz+fjq uwX/cx0vx9UxOVwxHkQNmQ== 0000007332-97-000003.txt : 19970221 0000007332-97-000003.hdr.sgml : 19970221 ACCESSION NUMBER: 0000007332-97-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970210 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970211 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHWESTERN ENERGY CO CENTRAL INDEX KEY: 0000007332 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 710205415 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08246 FILM NUMBER: 97524369 BUSINESS ADDRESS: STREET 1: 1083 SAIN ST STREET 2: P O BOX 1408 CITY: FAYETTEVILLE STATE: AR ZIP: 72702-1408 BUSINESS PHONE: 5015211141 FORMER COMPANY: FORMER CONFORMED NAME: ARKANSAS WESTERN GAS CO DATE OF NAME CHANGE: 19790917 8-K 1 DATE OF REPORT 02/10/97 =================================================================== SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) February 10, 1997 ----------------- SOUTHWESTERN ENERGY COMPANY (Exact name of registrant as specified in its charter) Arkansas 1 - 8246 71-0205415 (State of incorporation (Commission (I.R.S. Employer or organization) File Number) Identification No.) 1083 Sain Street, P.O. Box 1408, Fayetteville, Arkansas 72702-1408 (Address of principal executive offices, including zip code) (501) 521-1141 (Registrant's telephone number, including area code) No Change (Former name, former address and former fiscal year; if changed since last report) =================================================================== Item 5. Other Events Reference is made to the press release issued February 10, 1997, filed herewith as Exhibit 1, announcing the operating results of the registrant for 1996. Item 7.(c) Exhibits Reference (1) Press release dated February 10, 1997 p. 3 - 7 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SOUTHWESTERN ENERGY COMPANY --------------------------- (Registrant) DATE: February 11, 1997 BY: /s/ GREG D. KERLEY ------------------ ------------------------ Greg D. Kerley Vice President -- Treasurer and Secretary EX-99 2 PRESS RELEASE DATED 2/10/97 NEWS RELEASE For Further Information Contact: Stanley D. Green Executive Vice President - Finance and Corporate Development (501) 521-1141 SOUTHWESTERN ENERGY COMPANY ANNOUNCES 1996 RESULTS FAYETTEVILLE, ARKANSAS - February 10, 1997...Southwestern Energy Company (NYSE:SWN) today reported 1996 net income of $19.2 million, or $.78 per share, compared to $11.2 million, or $.45 per share, in 1995. Revenues in 1996 were $189.2 million compared to $153.1 million in 1995. For the quarter ended December 31, 1996, net income was $6.8 million, or $.28 per share, compared to $4.8 million, or $.19 per share, for the same period in 1995. Revenues for the fourth quarter of 1996 were $60.8 million, compared to $45.3 million for the fourth quarter of 1995. Southwestern also announced that it added 87.6 billion cubic feet (Bcf) equivalent oil and gas reserves from drilling and from acquisitions of producing properties in 1996. After production and downward revisions of previous estimates, the Company's oil and gas reserves were 346.9 Bcfe at December 31, 1996, up from 307.8 Bcfe at the end of 1995. Charles E. Scharlau, Chairman and Chief Executive Officer of Southwestern, said that the year-to-year improvement in operating results was evident in both of the Company's major business segments: "Our exploration and production segment benefited from improved natural gas prices while our gas distribution segment had increased deliveries to end-use customers due to colder weather and customer growth." Gas, Oil Production Higher Gas and oil production in 1996 was 37.1 Bcfe, up from 35.9 Bcfe in 1995. For the quarter ended December 31, 1996, gas and oil production was 9.6 Bcfe, compared to 8.8 Bcfe for the same period in 1995. - MORE - Gas production in 1996 totaled 34.8 Bcf, up from 34.5 Bcf in 1995. For the quarter ended December 31, 1996, gas production was 8.7 Bcf, compared to 8.4 Bcf for the same period in 1995. Sales to Southwestern's own utility systems increased to 16.3 Bcf during 1996, compared to 13.9 Bcf for the same period in 1995. The colder weather in early 1996 resulted in a higher level of withdrawals from the utility's storage facilities and thus increased its demand for supplies to replenish those facilities. The increase in sales to the utility were partially offset by a reduction in sales to unaffiliated purchasers. Sales to unaffiliated purchasers were 18.5 Bcf in 1996, compared to 20.6 Bcf for the same period in 1995. Oil production during 1996 totaled 391,000 barrels, up from 229,000 barrels in 1995. The increase was due primarily to producing properties acquired during 1995 and 1996. Southwestern received an average price of $2.26 per thousand cubic feet (Mcf) for its gas production during 1996, up from $1.72 per Mcf in 1995. The Company's average sales price for oil production in 1996 was $21.21 per barrel, up from $17.15 per barrel in 1995. Property Acquisitions Increase Reserves The Company owned total oil and gas reserves of 346.9 Bcfe at December 31, 1996, an increase of approximately 13% from 307.8 Bcfe at the end of 1995. Southwestern's natural gas reserve additions for 1996 were 49.1 Bcf, including 16.4 Bcf from drilling and 32.7 Bcf from purchases of reserves in place. After production of 34.8 Bcf and net downward revisions of 11.7 Bcf, the Company owned 297.5 Bcf of proved natural gas reserves at December 31, 1996, up from 294.9 Bcf at the end of 1995. The Company added 6,350,000 barrels of oil reserves during 1996 through producing property acquisitions and 61,000 barrels from drilling. After production of 391,000 barrels, net upward revisions of 74,000 barrels, and dispositions of 8,000 barrels, the Company's proved oil reserves were 8,238,000 barrels at the end of 1996, up from 2,152,000 barrels at the end of 1995. Utility Deliveries Up 9%, Reflect Colder Weather and Strong Customer Growth Deliveries of Southwestern's utility systems during 1996 to sales and end-use transportation customers reflected continued strong customer growth and weather which was 5% - MORE - colder than normal and 6% colder than in 1995. The Company's utility systems delivered 35.4 Bcf to these customers during 1996, up from 32.6 Bcf in 1995. Growth in the average number of utility customers was approximately 2% in 1996. The growth was the result of continued strong economic development in the Company's service territories, particularly in northwest Arkansas. The Company's average utility sales rate increased to $4.57 per Mcf during 1996, up from $4.12 per Mcf in 1995. The increase reflected higher prices paid for purchases of natural gas which are passed through to customers under automatic adjustment clauses. Capital Spending Up In 1996; 1997 Budget 28% Lower Southwestern also reported total capital spending of $124.9 million in 1996 consisting of $110.3 million for exploration and production, $12.8 million for utility system improvements and $1.8 million for other purposes. The exploration and production expenditures for 1996 included $45.8 million for producing property acquisitions. Capital spending budgeted for 1997 totals $90.3 million, a decrease of 28% from actual spending in 1996. Spending plans for 1997 include $75.4 million for exploration and production, $12.3 million for utility system improvements and $2.6 million for other purposes. The exploration and production spending budget includes $20.0 million for producing property acquisitions. "A substantial part of our exploration and production capital spending in 1996 was directed toward the acquisition of 3-D seismic data and leasehold acreage for major projects in south Louisiana and along the Texas Gulf Coast," said Scharlau. "These costs didn't add reserves in 1996, but have helped us build a significant inventory of prospects which we have begun to drill in 1997." Southwestern is a diversified natural gas company whose wholly-owned subsidiaries are engaged in gas and oil exploration and production, natural gas gathering, transmission, and marketing, and natural gas distribution. # # # Financial Summary Follows Page 1 of 2 SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
Statements of Income (Unaudited) Three Months Twelve Months Periods Ended December 31 1996 1995 1996 1995 - -------------------------------------------------------------------------------- ($ in thousands, except per share amounts) Operating Revenues Gas sales $ 55,725 $ 42,402 $174,738 $142,455 Oil sales 3,726 1,094 8,294 3,924 Gas transportation 998 1,158 4,210 4,964 Other 359 610 1,984 1,768 - -------------------------------------------------------------------------------- 60,808 45,264 189,226 153,111 - -------------------------------------------------------------------------------- Operating Costs and Expenses Purchased gas costs 17,244 12,769 42,851 37,133 Operating and general 14,406 12,193 50,509 44,436 Depreciation, depletion and amortization 11,349 8,823 42,394 35,992 Taxes, other than income taxes 1,664 1,263 5,476 4,362 - -------------------------------------------------------------------------------- 44,663 35,048 141,230 121,923 - -------------------------------------------------------------------------------- Operating Income 16,145 10,216 47,996 31,188 Interest Expense 3,947 3,127 13,044 11,167 Other Income (Expense) (1,321) 1,191 (4,015) (1,227) - -------------------------------------------------------------------------------- Income Before Provision for Income Taxes 10,877 8,280 30,937 18,794 - -------------------------------------------------------------------------------- Provision for Income Taxes Current (4,859) (4,175) (5,569) (4,908) Deferred 8,887 7,386 17,320 12,167 - -------------------------------------------------------------------------------- 4,028 3,211 11,751 7,259 - -------------------------------------------------------------------------------- Income Before Extraordinary Item 6,849 5,069 19,186 11,535 Extraordinary Loss Due to Early Retirement of Long-Term Debt (Net of $185 Tax Benefit) - (295) - (295) - -------------------------------------------------------------------------------- Net Income $ 6,849 $ 4,774 $ 19,186 $ 11,240 ================================================================================ Earnings Per Share Income Before Extraordinary Item $0.28 $0.20 $0.78 $0.46 Extraordinary Loss Due to Early Retirement of Long-Term Debt (Net of $185 Tax Benefit) - (0.01) - (0.01) - -------------------------------------------------------------------------------- Net Income $0.28 $0.19 $0.78 $0.45 ================================================================================ Weighted Average Common Shares Outstanding 24,710,827 24,694,630 24,705,256 25,130,781 ================================================================================ Cash Flows From Operations (Before Working Capital Changes) $28,455 $19,154 $ 82,958 $ 60,375 ================================================================================
Page 2 of 2 SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
Operating Statistics Three Months Twelve Months Periods Ended December 31 1996 1995 1996 1995 - -------------------------------------------------------------------------------- Gas Production (Bcf) Affiliated sales 4.3 4.4 16.3 13.9 Unaffiliated sales 4.4 4.0 18.5 20.6 - -------------------------------------------------------------------------------- Total 8.7 8.4 34.8 34.5 - -------------------------------------------------------------------------------- Average price per Mcf $2.45 $1.92 $2.26 $1.72 ================================================================================ Oil production (MBbls) 162 65 391 229 Average price per Bbl $23.05 $16.90 $21.21 $17.15 ================================================================================ Distribution deliveries (Bcf): End-use customers 10.8 10.5 35.4 32.6 Off-system deliveries 0.4 1.3 3.6 9.8 Average sales rate $5.00 $3.89 $4.57 $4.12 Average number of customers 170,327 166,155 168,603 164,705 Degree days 1,674 1,749 4,627 4,376 ================================================================================ Capital Expenditures By Segment Exploration and production $ 45,215 $ 27,574 $110,352 $ 82,237 Gas distribution 3,293 5,620 12,752 18,523 Other 994 141 1,809 866 - -------------------------------------------------------------------------------- $ 49,502 $ 33,335 $124,913 $101,626 ================================================================================ Condensed Balance Sheets (Unaudited) Current assets $ 72,933 $ 63,896 Investments 6,557 9,114 Property, plant and equipment, net 568,702 485,819 Other assets 11,998 10,264 - -------------------------------------------------------------------------------- Total assets $660,190 $569,093 ================================================================================ Current liabilities $ 41,822 $ 45,410 Long-term debt, less current maturities 275,214 207,757 Deferred income taxes 130,686 117,564 Other liabilities 4,527 3,858 Shareholders' equity 207,941 194,504 - -------------------------------------------------------------------------------- Total liabilities and shareholders' equity $660,190 $569,093 ================================================================================
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